The Shanghai Composite Index slipped 0.3% to 4,095 on Wednesday, while the Shenzhen Component Index declined 0.4% to 15,792, extending the previous session’s losses. Investor sentiment remained under pressure amid ongoing tensions between China and Japan and a lack of fresh market catalysts.
China has effectively halted exports of certain tungsten products to Japan this year, and shipments of rare-earth magnets in May fell to their lowest level since May 2025, when Beijing first introduced its global export-control regime. The measures, which also cover dysprosium and terbium, have remained in place amid a diplomatic dispute triggered by Japanese Prime Minister Sanae Takaichi’s remarks on Taiwan last November.
Leaders of Asia’s two largest economies are expected to attend the Asia-Pacific Economic Cooperation forum in Shenzhen, though the outlook for a bilateral meeting is still uncertain. On the corporate front, notable decliners included Zijin Mining Group (-1.2%), Foxconn Industrial Internet (-1.5%), and NAURA Technology (-2.7%).
